SUNNY SCHOOLS & LOCAL ENERGY COMMUNITIES

Deadline for Submission: July 25, 2025
Total Funding Available: $ 390,000 (Lot 1: $ 270,000; Lot 2: $ 120,000)
Implementation Period: Lot 1: up to 8 months; Lot 2: up to 12 months

BACKGROUND AND OBJECTIVES OF THE CALL

Since 2022, Open Society Foundations – Western Balkans (OSF-WB)  through the Sunny Schools initiative has supported the development of photovoltaic (PV) infrastructure in 86 public schools across 33 municipalities across Albania, Bosnia and Herzegovina, Kosovo, North Macedonia, and Serbia. The initiative has demonstrated that public schools can serve as community-driven models of energy transition and climate resilience. This initiative and additional strategic interventions developed and implemented by OSF-WB and its partners seek to ensure the sustainability and inclusivity of energy transition by empowering local governments, communities and stakeholders to implement just and equitable future-oriented energy models.

Building on OSF-WB’s long-term commitment to promoting Just Energy Transition and energy democratisation in the Western Balkans, the next phase of this regional initiative will be two-fold:

1. Expand the network of Sunny Schools through rooftop photovoltaic installations and community engagement based on co-funding agreements with local government;
2. Support municipalities[1] to establish local energy communities, ensuring long-term sustainability, citizen participation, and locally governed renewable energy systems beyond school-based infrastructure expanding on social services infrastructure and public buildings.

As part of this next phase, OSF-WB is pleased to invite municipalities in the Western Balkans to apply for support under two distinct lots:

🟨 Lot 1: Sunny Schools – Installation of PV Systems on School Rooftops
🟩 Lot 2: Establishment of Energy Community models by Municipalities

DESCRIPTION OF LOTS

LOT 1: Sunny Schools – Installation of PV Systems on School Rooftops

Under this lot, OSF-WB will support 3 to 5 municipalities to install PV systems on the rooftops of public schools. The goal is to reduce energy costs for schools, enabling them to redirect savings into educational resources and infrastructure. In cases where excess electricity is generated, schools may also create income streams through net metering or other incentive schemes, with the potential to reinvest those funds in education development.

Beyond financial benefits, the initiative seeks to position municipalities and schools as active players in local climate action—demonstrating how public institutions can drive the energy transition, promote climate and environment awareness, and engage students and the broader community in sustainability efforts. This model not only showcases the practical benefits of solar energy but also fosters a culture of energy responsibility at the local level.

Under this lot, Municipalities will not receive direct grant funding; instead, they will benefit from comprehensive technical and financial support administered and coordinated by OSF-WB. This means that the financial resources will be managed directly by the OSF-WB that will assume responsibility for contracting and covering all costs related to the procurement and installation of the PV systems.

What’s included in the support:

• Technical and financial assistance for the assessment and installation of rooftop PV systems on one or more public school buildings;
• Expert support for legal, technical, and administrative procedures;
• Capacity building for municipal and school staff on energy management and maintenance;
• Opportunities to connect with other green-minded municipalities in the region.

Municipalities will manage their own co-funding for the investment.

LOT 2: Establishment of Energy Community Models by Municipalities

Under this lot, OSF-WB will provide support to at least two municipalities in the Western Balkans in piloting the establishment of local energy communities led by municipalities and designed to serve the broader public interest. The proposed budget must not exceed this maximum amount. Selected municipalities will receive direct funding in terms of grants of up to $60,000 per municipality and will assume full responsibility for managing the granted funds and for implementing their proposed energy community models, in accordance with the objectives and requirements set forth in this call.

These pilots aim to test and showcase innovative governance models that promote energy democracy, enable meaningful citizen engagement, and ensure the sustainable, transparent management of distributed renewable energy systems.  The energy assets forming the basis of these communities – such as Sunny Schools installations or PV systems funded by other donors – must be either fully owned by the municipality or fall under its direct jurisdiction and management to ensure that the benefits remain within the community. Municipalities are expected to develop a local policy and governance framework for energy communities that aligns with relevant EU directives (eg. Renewable Energy Directive, Electricity Market Directive) and is grounded in national legislation. The proposed models should adopt an inclusive co-governance approach, meaning that both local authorities and citizens have clearly defined roles in decision-making and day-to-day management of the energy community[2].

This lot is not intended to finance new PV installations, but rather to support municipalities with existing or planned renewable energy investments in formalizing local energy communities. The focus is on structural and institutional readiness, laying the legal, policy, and operational groundwork (including business plan and financial model) for scaling energy communities as a long-term, locally governed, and socially inclusive solution for energy transition.

Municipalities may propose a range of activities under their request, including but not limited to:

• Establishing a Municipal Energy Community Model and governance: Municipalities may include activities focused on conducting legal, regulatory, and financial assessments necessary to develop and operationalize a local energy community. This may involve preparing documentation, conducting feasibility studies, and navigating national and EU. frameworks related to citizen energy, public utilities, and energy market regulation.
• Designing Business Models, Governance Structures, and Revenue Management Mechanisms: Municipalities may propose activities aimed at developing sustainable business plans and selecting appropriate governance frameworks. Proposals may also include establishing procedures for managing and reinvesting revenues from energy production into community priorities, such as local services or new renewable energy initiatives.
• Peer Learning and Knowledge Exchange:  Proposed activities may include participation in regional or international exchanges with other municipalities or energy communities. This could involve study visits, peer-to-peer learning sessions, or participation in learning networks aimed at sharing experiences and replicable models from across the Western Balkans and EU.
• All activities should consider community and stakeholders consultation.

ELIGIBILITY CRITERIA

The call is open to municipalities located in the Western Balkans. To be considered eligible, municipalities must demonstrate institutional commitment. Municipalities must show clear willingness—both at the political leadership and administrative levels—to engage in and prioritize energy transition initiatives. This includes openness to adopting inclusive, sustainable energy models and integrating them into local development strategies.

Additional Eligibility Criteria for Lot 1:  Sunny Schools – Installation of PV Systems

In addition to the general criteria, municipalities applying under Lot 1 must:

• Be Located in: Albania, Bosnia and Herzegovina, Kosovo, North Macedonia or Serbia[3]
• Propose One to Three Public Schools with Solar Potential: The municipality must propose a minimum of one and a maximum of three public school facilities that are suitable for the installation of photovoltaic (PV) systems under this support. The proposed schools should have adequate rooftop space, structural integrity, and access to the electricity grid to ensure effective system installation and operation.
• Commit to Monitoring, Reporting, and Reinvestment: Municipalities must be ready to track energy savings and provide basic reporting. Savings from reduced electricity costs should be reinvested in community-identified priorities, such as educational improvements, facility upgrades, or additional school green initiatives.
• Be Ready to Match Funding: Municipalities should express readiness to co-finance the installation of PV systems on at least one additional public school, using their own budget or other resources, should the initiative receive support from OSF-WB.

Additional Eligibility Criteria for Lot 2: Establishment of Energy Community Models

In addition to the general criteria, municipalities applying under Lot 2 must:

• Be Located in: Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia or Serbia
• Have Existing or Planned Municipal Ownership of Renewable Energy Assets: Municipalities must have existing or upcoming investments in renewable energy infrastructure (e.g., PV systems), which are either fully owned by the municipality or fall under its direct jurisdiction and management. This ensures that any established energy community will be anchored in public ownership and aligned with the principles of energy democracy and public benefit.

SELECTION CRITERIA

Expression of interest (EoI) and applications will be evaluated based on:

• Feasibility and quality of the proposal (30 points);
• Local commitment and readiness (40 points);
• Potential for impact and replication (30 points).

The top 3-5 municipalities (for Lot 1) and at least 2 municipalities (for Lot 2) will be selected for support.

APPLICATION PROCESS

Municipalities may apply for one or both lots by submitting the required documents no later than COB on July 25, 2025 to municipalities@osfwb.org

Required documents for Lot 1

Municipalities must submit a completed EOI (Annex 1).

The EOI should include:

• A short description of the municipality and its participation or plans to sustain energy transition at the local level.
• Proposed school(s), motivation, number of students, and any past energy investments.

Required documents for Lot 2

Municipalities must submit a completed EOI (Annex 1) and Concept Note (Annex 2). The submission should include:

• Project description; Existing or planned infrastructure, proposed potential structure (energy community/company), and intended benefits.

Municipalities pre-selected for Lot 2 will be invited to submit Full Application and Budget to OSF-WB after receiving information for pre-selection.

For questions or more information, please contact: municipalities@osfwb.org no later than 5 days before the deadline.

Indicative timeline

Review and answers for lot 1 – August 4
Review and answers for lot 2 – September 5
Contract signing for issued grants for lot 2 – October  

LET’S LEAD THE ENERGY TRANSITION TOGETHER!

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[1] Term municipality includes all forms of local-self-government (cities, municipalities…)

[2] https://www.rescoop.eu/uploads/rescoop/downloads/QA-What-are-citizens-energy-communities-renewable-energy-communities-in-the-CEP.pdf

[3] Montenegro is currently a pilot country. Results of the pilot will be necessary to decide on further expansion of the initiative.